Brazil's Eletrobras approves Petrobras debt renegotiation plan

Redacción de Reuters

1 MIN. DE LECTURA

SAO PAULO, March 17 (Reuters) - The board of Brazil’s state-run power company Eletrobras approved a plan to renegotiate a 8.6 billion reais ($2.6 billion) debt payment to state-run oil firm Petroleo Brasileiro SA, according to a filing on Tuesday.

Eletrobras said 6.1 billion reais of the debt would be paid directly to Petrobras and its subsidiary BR Distribuidora. The money will come from the CDE, a government development fund financed with taxes that consumers pay on their electricity bills.

The remaining funds would be guaranteed by Eletrobras until electricity regulator Aneel approves the use of more credits from the CDE, Eletrobras said.

The board’s approval concludes a process that started in December of last year, when Eletrobras agreed to pay its debt to Petrobras in 120 monthly installments.